Process

Pendo's entire team are analysts conducting in-house fundamental research used for its investment portfolios.

Investment Universe

Pendo's investment universe is all non-US companies (above micro-cap) that have as little-to-no business with, or dependence upon, the United States market and currency as possible. Of this large universe, many countries limit access for non-local investors. This leaves a standard universe of companies, traditionally listed as ADRs trading on an US-listed exchange. Most managers stop here. As a natural result, this pool of common international equities is over-represented by typical global and international managers, index funds and now ETFs. Pendo takes its security selection several steps further.

Pendo is not limited by the common restrictions that limit many strategies. As such, Pendo does not adhere or "cling" to a benchmark. The investment objective is absolute return. The strategy is agnostic with regard to market cap, sector, geography, ADR or ordinary shares, developed or emerging markets, etc. This vastly expands the universe of available investments, allowing access to companies needlessly ignored by most international and global strategies.

Idea Generation

As contrarian investors, Pendo asserts that the best investment opportunities present themselves when discovering an opportunity out of favor or hidden from the typical fund manager.

Opportunities are often found when companies, sectors, or geographical investments are out of favor. As contrarians, we look for out of favor investments and determine whether there is a reason for them being out of favor or not.

Other opportunities are found when there are no or few analysts following the company, as often is the case with spin-offs. Pendo and its analysts have followed spin-offs since the mid 90s and have several proprietary research studies concluding that as an asset class, spin-offs have provided well above market returns.